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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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07.11.2006

aleo solar AGs revenue in the first nine months of 2006 increased to
EUR78.9 million (comparable period of 2005: EUR76.6 million). Ten
percent of this figure was generated abroad, compared with a mere one
percent in the prior-year period. Earnings before interest and taxes
(EBIT) amounted to EUR5.7 million (prior-year period: EUR12.8
million). In Q3 2006, fewer solar modules were sold in Germany than
aleo solar had expected. Increased purchase prices for solar cells
and the decline in the selling price of solar modules impacted
results. Until now, the Company had assumed that a strong fourth
quarter would allow it to reach its annual targets. Now, an analysis
of the sales figures for October presents a different picture:
following the abrupt decline in demand caused by the discussion of
module prices in Germany in July/August, aleo solars sales volumes
rose steadily again, with a clear rise in customer inquiries being
recorded in October in particular. However, to date this has not
translated into the level of orders expected. In addition, a portion
of the revenue from contracts with Spanish customers planned for this
year will be postponed to the first quarter of 2007. Therefore,
despite its successful international business, aleo solar is revising
its forecasts for full-year 2006: the Company aims to increase its
2005 revenue of EUR106.9 million to EUR116 million in the current
year. Until now, growth of over 25 percent had been planned. Aleo
solar has already reacted to the change in market conditions and has
cut prices for solar modules in the fourth quarter, as well as
boosting its sales activities. For full-year 2006, aleo solar is
expecting a sound EBIT margin of between 6 and 7 percent. Aleo solar
will further expand its position on the international market so as to
make it increasingly independent of the German market.